how to invest in 1st property

Question

hello! im new to this real estate game and i just want some advice on how to invest into a rental property. i have 13k just not sure where to start. thanks in advance

Andrew Freed · Answer

@Juan García - Start with a low down payment house hack and grow your portfolio from there. Very low risk and in most cases, you can live for free or close to free. Once you start living for free, saving money becomes way easier since your most expensive line item is removed, housing costs. Aim to purchase a new house every year or every other year and in 10 years, you'll be set. That's the easy way to building wealth but does require patience.

Hatem Mahgoub · Answer

@Juan Ignacio Barajas Hernandez

I am new too. Still figuring my way as well. Do you have any thoughts as to how and where to start. In state or out of state? Keep me in the loop. We can exchange knowledge and experience. What books would you recommend?

Jimmy Woodard · Answer

@Juan Ignacio Barajas Hernandez your best bet is to network with other real estate investors to pull together resources and buy a property. With $13k there won't be much you can do on your own, but just imagine if you found 3-4 other first-time investors with the same drive and capital you have. Between BiggerPockets (you already found someone via @Hatem Mahgoub) and local meetup groups, the partnership possibilities are endless. Good luck and DM me if you have any other questions!

Colton Hahn · Answer

Hey Juan, Welcome! What I would do is begin by immersing yourself in as much knowledge as you possibly can. Look up videos and podcasts about real estate investing. I would urge anyone and everyone to learn as much as possible before jumping into an investment. Remember, the person who knows the most is most likely to come out on top.

Juan Ignacio Barajas Hernandez · Answer

thanks i appreciate all the advice ! 🙏🏽

Scott Johnson · Answer

100% Agree! While a lot of people want to "jump in" and get going with real estate investment it's critical that you take a step back, educate yourself, start developing a team (broker, hard money, lender, etc...) , and work for free for some local investors. That'll skyrocket your learning experience.

Jacob H. · Answer

Just as others have said, use the forums and podcasts/books to accumulate a good deal of knowledge first. Many investors get started by first purchasing their own primary residence and turning that in to an investment. In many cases, this is more realistic if you are looking to start but don't have a large sum for a down payment. an FHA loan may be something you'd want to look into as the down payment can be lower than a traditional loan of 20-25%.

Everyone needs to live somewhere so you can purchase your primary residence, live there, pay down principal, and enjoy appreciation/tax benefits. While you're at it, rent out a room or two, or even use a hosting website like Airbnb or VRBO to make additional income from the house. Live for free and maybe even make some cash flow from it. Considering all of these combined factors, you are setting yourself up for success in expansion with real estate, all while building wealth.

Juan Ignacio Barajas Hernandez · Answer

thanks i appreciate it!

how to invest in 1st property

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